General Enquiries: 020 7561 1786 or Email: info@credit-union.coop      |       CU Loan Repayment Issues Only: 020 3763 8397  or Email: loansupport@credit-union.coop

Budgeting better in 2022

by | Jan 10, 2022 | news |

Budgeting better in 2022

2021 has been another challenging year for most of us and people’s finances are being stretched further and further. With the start of a new year, now’s the time to think about how we can all manage our money better…

The first thing to say, if you’ve got a new year credit card hangover, is don’t let the interest build up and don’t turn to high cost lenders to pay off your bills. We can help you clear what you owe, so you don’t get into a spiral of debt.

One of our low cost Saver Loans, for example, allows you to borrow enough to pay off your bills, while allowing you to save a little bit each month. Our loans are fair and affordable – you will only pay interest on the reducing balance of the loan; you can pay off the loan at any time and the typical interest rate is 12.7% APR. You can access your savings once the loan is repaid, and the Saver Loan principle means you can gradually reduce and ultimately eliminate your need to borrow.

If Christmas is an expensive time for you, then it’s never too early to start saving with one of our Christmas savings accounts. You can put away as much or as little as you would like, although we would recommend at least £5 per week or £20 per month, which you can then withdraw from the Credit Union in the run up to next Christmas. By opening a dedicated Christmas savings account, you are less likely to spend the money on something else. We also offer a range of budgeting accounts for things such as holidays, cars and pets, as well as our Young Saver children’s account.

Of course, the best way to save is to put away a little bit each month on a regular basis and our Salary Savings Scheme is ideal if you work for one of the employers listed on our website. Your savings contributions (or indeed loan repayments) are deducted direct from your pay packet, so it’s much harder to miss a payment or to spend the money elsewhere.

If you would like some help managing your money, then we provide information on the Money Management page of our website about a range of resources which could be useful for you. The MoneyHelper Budget Planner, for example, is a great place to start getting your finances in order and there is advice on debt and borrowing as well as how to check your credit report. Of course, if you’re one of our members and would like to discuss your financial situation, you’re always welcome to contact us, and the team at MoneyHelper is on hand to provide free, impartial advice to those with money troubles.

It’s never too late for a new start, and a new year is the perfect time to begin budgeting better. So, if you would like to benefit from the range of services and support we offer at the credit union, then why not join us today?

Previous

Next

Related Posts

Volunteer graphic

It's Nice to be Appreciated

Nov 12, 2025

Planning Ahead

Oct 13, 2025

Our HomeOwner Loan Interest Rates are Reducing

Aug 29, 2025

The Jeremy Hopgood Rooms, Caxton House, 129 St John's Way, Archway, London N19 3RQ
Tel: 020 7561 1786 (Multilingual advisers available)
Email: info@credit-union.coop

If you have a loan from us and need a little help managing repayments then
please call us on 0203 763 8397 to speak with one of our friendly Loan Support Officers who will find a way to help.

© 2026 LCCU  |  Complaints  |  Privacy Policy

© 2026 LCCU  |  Complaints  |  Privacy Policy

How We Decide to Whether to Offer a Loan – The Basics

The Credit Union’s primary objective is to help members avoid or escape from debt by promoting a culture of saving. When we offer loans, we only do so if the borrower agrees to save a little while they repay. The establishment of a savings habit is proven to reduce the harms and risks of long-term borrowing becoming problem debt. Basically, when we get a loan application our decision is based on the following two principles:

1. Do we trust the applicant to repay the loan?

2. Can the applicant afford the loan repayment

This guide is designed to help members understand our thinking so you can best prepare if you should need to apply or re-apply for a loan.

1. Key Points in Our Assessing Trust of the Applicant

a) Has the applicant started saving? The money we lend is members savings so, especially at busy times, we have to give priority to loan applications from members who have made at least one savings payment. That first payment is good evidence that you are a real person and helps us confirm identity.

b) Proper Proof of ID & Address? What forms of proof of identity and address has the member provided? If you are able to connect your bank account through ‘open banking as art of the loan application process it a good way of proving ID. First time loans may be required to use online Open Banking.

c) Previous Borrowing History. Has the applicant borrowed and repaid us previously? Previous good repayment record supports any application.

d) Did the applicant inform us of other money owed? Failure to list all debts in the application process is likely to result in the loan application not being approved. It suggests that the applicant is either not in control of their money or not being completely honest with us and in either case we cannot put our members savings at risk by lending. Credit Reference Agency checks are used to show us what money is owed and to whom.

e) Is the member sensible with money? When we review the bank transactions of the loan applicant, we often see patterns of expenditure that suggest the applicant is not taking a sensible approach to expenditure. Changes in the way they manage their finances would suggest that the loan would not really be necessary. We want to help people be in control their finances and do not want to lend members savings to people who are not deemed sensible with the way they spend. This may be things like gambling, excessive shopping and/or eating out/takeaway food deliveries.

f) Always be ‘up front’ in your application. Honesty pays. We do not judge.

2. Key Points in Our Assessing Affordability for the Applicant

a) Is this loan in the member’s best interest? The value of the loan application in comparison with your income is a key measure of affordability. The loan interest members pay on loans pays our staff salaries, but we are not out to profit from you, rather we want members to borrow less over time and take control of their finances.

b) Positive Bank Balance at Month End? Is there money left in the members bank account at the end of the month that would be sufficient to cover the loan repayment if approved? If not, the member must explain how the loan would become affordable, for instance, by reducing expenditure in other areas.

c) Is the applicant struggling with existing debts? When we review the bank transactions of the applicant we can see income and expenditure. If the loan applicant tells us how the loan will clear other debts and reduce their expenditure this will help us understand affordability.

d) Is the purpose of the loan considered sensible? If the applicant is not paying essential bills such as mortgage or rent then a loan for a car or holiday is likely to be unwise and unaffordable.

e) Has the applicant fully explained why they need to borrow? Always feel free to email or call us explaining the circumstances that mean you need to borrow. The reasons for needing to borrow are complex, but being honest and explaining the circumstances can often help the ordinary humans on the Loans Team at the Credit Union to be able to assess trust and affordability. You briefly explaining your thinking about affordability gives us confidence that you are thinking sensibly about money, and sometimes allows us to suggest alternatives that may well be in your best interest.

f) Is the loan to clear other more expensive debts? Credit Reference Agency checks are used to show us what money is owed and to whom. If your loan application is to pay off other debts, stop and list every one of those debtors.Work out the cost of each. Consider clearing one or two at a time if its your first Credit Union loan. Pick them off one or two at a time, the most expensive first.

g) Has the applicant stopped to think about affordability? The ‘Your Money’ section of our website provides access to a budget planner which, if used and shared, gives us good evidence of affordability. Particularly helpful for loan applicants in financial stress. We hope this gives you an idea of how we decide yes or no to loan applications. The decision is by one or more other credit union members on our Loans Panel. We hope this helps you understand our thinking so you can best prepare if you should need to apply or re-apply for a loan.